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If you are an entrepreneur, you’ve probably been hearing a lot about crowdfunding lately.

That is because the recently enacted Jumpstart Our Business Startups (JOBS) Act included a crowdfunding exemption that enables startups to sell up to $1 million of securities over a 12-month period without registering the securities with the SEC, provided that certain requirements are met.

However, the SEC recently issued a reminder that the agency has yet to adopt rules for implementing the exemption and until the rules are adopted, any offers or sales of securities purporting to rely on the exemption would be unlawful under federal securities laws. The SEC has until early January 2013 to adopt the rules.

The SEC statement is available online here. For background information on the concept of crowdfunding, see our previous blog coverage of the topic. Bingham Greenebaum Doll LLP will continue to monitor the progress of the rules. Look for a more detailed article on this topic in our June newsletter. Sign up here.